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News May 8, 2008
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Sales tax holiday Memorial weekend
By Nathan Straus News Reporter

Texas shoppers can save themselves from the sting of state and local sales taxes from Memorial Day weekend, May 24 to May 26. The sales tax holiday will apply to select energy efficient appliances with the Energy Star label.

Susan Combs, Texas comptroller, said the holiday is a new annual holiday to give Texans extra incentive to replace old appliances with newer, more energy efficient models.

"Shoppers will pay no sales tax on selected Energy Star products and they will save even more on their future utility bills as Energy Star qualified appliances use 10-50 percent less energy and water than standard models, according to the United States Environmental Protection Agency."

The Energy Star Sales Tax Holiday will apply to air conditioners priced under $6,000, ceiling fans, dehumidifiers, dishwashers, incandescent and fluorescent light bulbs, programmable thermostats, refrigerators priced under $2,000 and clothes washers. The holiday sales tax will not apply to clothes dryers as most models have similar energy usage.

R.J. DeSilva, spokesperson for the comptroller, said consumers are expected to save around $2.6 million off the sales tax holiday alone.

"We don't have estimates for savings in the long term," DeSilva said.

DeSilva also said the reason for this is the wide variety of energy usage seen in homes. A single occupant would have a much smaller energy bill than a family.

To qualify for this tax exemption, the Energy Star logo must appear on the appliance, packaging or the energy guide label.

DeSilva said the logo is usually blue with the word "Energy" and a star on it.

The sales tax exemption will also apply to catalog or internet purchases of eligible products during the Memorial Day weekend and items on layaway or removed from layaway at that time.

Combs said conservation and energy diversity are critical for Texas to continue to meet the needs of its growing population and economy.

"The legislature created the Energy Star Sales Tax Holiday to reward Texans for choosing the most energy efficient appliances available and helping preserve the state's energy resources, " Combs said.

A press release from the comptroller's office stated Energy Star is a joint operation of the Environment Protection Agency and the Department of Energy. To earn this star, a product must fall within certain efficiency guidelines.

For example, qualified dishwashers must use at least 41 percent less energy than models meeting minimum standards. The number is 15 percent for qualified refrigerators, 14 percent for central air conditioners, 10 percent for room air conditioners and 50 percent for ceiling fans. Energy Star fluorescent light bulbs use about 75 percent less energy than standard incandescent bulbs, the release stated.

More information about the tax holiday can be found at www.window.state.tx.us, while information on Energy Star products is available at www.energystar.gov.

DeSilva said these products are available at Home Depot, Sears, Lowe's or just about any other appliance store.

The Energy Star Sales Tax Holiday should not be confused with the August 15-17 annual August sales tax holiday on clothing and shoes.